After an individual's death, his or her assets will be gathered, business affairs settled, debts paid, necessary tax returns filed, and assets distributed as the deceased individual (generally referred to as the "decedent") directed.

These activities generally will be conducted on behalf of the decedent by a person acting in a fiduciary capacity, either as executor or as trustee, depending upon how the decedent held his or her property.  It is helpful to know the meaning of a few common terms:

Beneficiary

A person for whose benefit a will or trust was made; the person who is to receive property, either outright or in trust, now or later.

Executor (Also called "personal representative")-

An individual or trust company that is appointed by the court to administer and settle the estate of a testator according to the terms of the will.

Fiduciary

A person or trust company that acts for the benefit of another. Trustees, executors, and personal representatives are all fiduciaries.

Grantor

(Also called "settlor" or "trustor") An individual who conveys property by means of a trust; the person whose wishes are expressed in the trust.

Testator

A person who has made a valid will.

Trustee

An individual or trust company that holds legal title to property for the benefit of another and acts according to the terms of the trust.

As a general rule, the administration of an estate or trust after an individual has died requires the fiduciary to address certain routine issues and follow several standard steps to distribute the decedent's assets in accordance with his or her wishes. The steps vary depending on whether the decedent has probate or nonprobate assets, whether assets are passing under the terms of a Will, Trust or other beneficiary designation.

Probate
Probate is the formal legal process that gives recognition to a will and appoints the executor or administrator (where there is no will) who will administer the estate and distribute assets to the intended beneficiaries. Illinois law requires that a probate estate be opened in most circumstances where the decedent owned real estate titled solely in his or her name, or left other assets titled solely in his or her or name valued in excess of $50,000. Most probate proceedings are neither expensive nor prolonged.

Where the decedent's estate was arranged with designated beneficiaries, such as payable on death accounts or trusts, or with joint tenants, and there are no solely owned assets without a designated beneficiary, then the estate does not require probate. Small Estate Affidavits can be used to distributed solely owned property of a decedent if in total the property is worth less than $50,000 and there are no outstanding debts or claims.

A Checklist for Beginning Estate Administration

Important Papers. Locate and review all the decedent's important papers as soon as possible after death. This would include funeral arrangements, anatomical gift directions, deeds, accounts & investment statements, Wills, Trusts, Land Trusts, gift list that may be referred to in a Will or Trust document, bonds, stock certificates, insurance papers for home and auto, etc.

Anatomical gifts. Did decedent make an organ donation by Will or other written instrument, such as a power of attorney for health care? If not, then relatives in the following order of priority may make such a donation: spouse, adult child, parent, adult siblings, guardian of the person.

Funeral Arrangements. If decedent hasn't expressed instructions for burial either in the will or with family members, then the right of burial rests with heirs beginning with spouse, then children, then parents and finally siblings. Payment for funeral expenses falls first on the decedent's estate, then a legally responsible relative or the Veteran's Administration. If none of the above are available the Illinois Department of Human Services will pay a limited amount for the funeral burial space and cemetery charges.

Death Certificates. Obtain several certified copies of the decedent's death certificate. You may obtain these from the funeral direct or the county health department/register of deeds/county recorder in the county where the death occurred.

Property. Secure the personal and real property of the decedent by locking up the home, changing locks, and notify insurance carriers to assure properly insured as vacant property if necessary.

Will. Is there a Will?

Yes. Obtain the original (such as fireproof box in home or safe deposit box) and contact the executor named to manage the estate. A Will must be filed with the clerk of courts of the county in which the decedent resided at his or her death or the county in which the substantial part of the estate rests.

No. Then the decedent's estate (not including joint tenancy or trust property) will be distributed according the State of Illinois rules of descent and distribution found in the Illinois Probate Act, section 2-1 as follows:

1. If a spouse and children of deceased survive decedent, then 2 to spouse and 2 to children in equal shares after all estate debts, taxes and expenses are paid.
2. If only a spouse and no children survive the deceased, then all to the spouse.
3. If only children and no spouse survive the deceased, then to children in equal shares.
4. If no spouse or children, then 1 share each to each parent and siblings who survive decedent and double share where only one parent survives decedent.

Is there a Trust or other estate distribution documents? Contact the trustee or successor trustee if the decedent was the trustee. Successor Trustees will need to locate all assets in the trust and change the name of the trustee with each institution or government entity.

Safe Deposit Box. If the box is held solely by the decedent an affidavit by an interested party such as an executor or trustee will need to be presented to the institution before entry will be permitted.

Create a general list of all assets owned by the decedent and the value of each on the date of the death of the decedent. Describe each asset listing type of asset, institution, how title to the asset is held, any designated beneficiaries, contact telephone number and value. Do NOT consolidate Trust with non-trust assets before consulting an attorney. If assets total more than $1,000,000.00 in a date in 2002 or 2003, please contact an attorney or accountant regarding filing an estate tax return.

Create a list of household goods owned by the decedent. If several beneficiaries, photograph personal property and work with a non-beneficiary (disinterested) person as a witness.

Contact the decedent employer for unpaid wages, unused sick or vacation time or other death related benefits that may be due the estate.

Contact all life insurance or annuity companies and apply for the necessary claim forms for pertinent collection of policies.

Create list of all debts and liabilities of the decedent.

Taxes. Investigate name and contact of tax preparer during decedent's life and obtain final three years of tax filings. Personal Income taxes may be due on income received before the death of the decedent and Estate Income taxes may be due on income over $600.00 received after the date of death of the decedent.

Real Estate. List all addresses of real property, how title held and approximate value; confirm sufficiently insured and secured.

Monitor incoming mail for any important indication of other assets or debts.

Automobiles. List each auto, how title held and approximate value. Protect all autos by placing in garage, storage and confirm each is adequately insured.
In most circumstances this information should be reviewed by an attorney for direction and advice.

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